People in their 50s have suffered from a sharp drop in their quality of life
in recent months, according to an in-depth quarterly study into health and
financial wellbeing of people born before 1961.

The rising price of utility bills, petrol prices and the cost of food combined with fears about unemployment and whether or not they will be able to afford retirement has hit those aged between 50 and 59, according to the Saga Quality of Life report.

Those over the age of 60, despite the fact they too have been hit by rising prices, tended to be more content with their lot, reporting the same or slightly improved standards of living and health compared with three months ago.

The study included a survey of 13,000 people over the age of 50 as well as a detailed analysis of Office for National Statistics data, undertaken by the Centre for Economic and Business Research, a think tank on behalf of Saga.

The 13,000 respondents to the survey were asked how they felt compared with a year ago, ranking their happiness, health and financial wellbeing. A score of zero indicated no change, while a minus score indicated feeling worse off. The overall index was -8.8 for all of those over the age of 50 including those well into retirement. This was a deterioration on the -8 score recorded three months ago, the first time the study was undertaken.

However, in the 50 to 54 age group – despite having far fewer health worries – the index was -11.8, far worse than the -10 recorded in January.

Ros Altmann, the director general of Saga, said: "Once people are in their 60s I think many settle down, and cope with adjusting to their situation.

"But when you are in your 50s you are still striving to improve your finances. And it's so awful for many, because their pensions aren't as good as they hoped, unemployment is a real issue and those with jobs are not seeing their wages go up anything like as quickly as prices are rising. They are really feeling the pinch."

To make matters worse for this age group, many are part of the so-called sandwich generation, having to help financially both their children at university and their own parents.

The relatively more content outlook of those over the age of 65 can partly be explained by rarely having to help out parents. Also an increasing number of this age group have jobs, a result of the recession, which saw many people carry on working beyond retirement age.

The number of over 65s in employment has risen by 35 per cent over the last three years, reaching 885,000 at the start of this year, according to the ONS. "We know that many people have carried on working because they can't afford to stop," said Ms Altmann, "but for many it gives them a sense of purpose, as well as useful income."

Older consumers are starting to severely cut back their spending to cope with lower incomes and higher prices, with 41 per cent saying they have cut back on eating out, compared with just 1 per cent saying they had increased their spending in this area.

Well over a quarter said they had cut back on visiting their hair dresser, compared to just 1 per cent saying they visited more. "This fall in spending by this age group will have a big impact on the economy and on jobs. These people have the time to spend, to visit the cinema, but many are cutting back," said Ms Altmann.

One of the main concerns for all of those over the age of 50 is the record low interest rates, which have hit all those that rely on income from their savings. The survey found that 63 per cent would like the Bank of England to raise rates. "It's only young people, who can't remember the terrible stagflation – no growth and rising prices – of the 1970s that think raising interest rates is always a bad thing," said Ms Altmann.